Grain Shippers Hit with Record-Breaking Fuel Surcharges

Railroad fuel surcharges on U.S. grain shipments have more than doubled in the past year, causing transportation costs to skyrocket for farmers during harvest season.

The average fuel surcharge rate on grain shipments climbed to 48¢ a mile per rail car in mid-September, up 153% from the previous year, according to data from the U.S. Department of Agriculture (USDA).

This has rippled through the farm belt, exacerbating production costs for farmers who are already struggling with higher fuel prices.

'We don't even like to look at it, because it just upsets you,' said Gary Millershaski, a wheat and sorghum farmer in Kansas and chairman of U.S. Wheat Associates.